Coinbase, the global trading platform for crypto currency, has announced that it will lay off 18 per cent of its workforce, that is, about 1,100 employees.
In a letter to the employees, Brian Armstrong, CEO, Coinbase, has conveyed that the cost of employees is too much for the Company to handle, and that is why, the firm is taking this hard decision to reduce headcount.
The letter further states that after more than 10 years of witnessing a boom, the crypto market is now heading towards heavy recession, and to prepare for the same, Coinbase will have to let go some of its employees.
The Company has also hired a law firm to advise it on the restructuring process.
Recently, Coinbase was in the news when in a blogpost, its chief people officer indicated that it will continue to the hiring freeze for another couple of weeks.
Since the crypto market is rather volatile anyway, Coinbase does not want to take unnecessary risks with the expected recession.
In the letter, the CEO also mentions that the Company grew too quickly in a very short period.
At the start of 2021, the crypto trading platform employed about 1,200 employees, and now its workforce strength stands at about 6000!
There has also been a decline in the number of active users on the platform. Additionally, the Company has reported a $430 million loss in the first quarter of 2022.